Loan for under 21 year old

otoodles

My son is 20 and wants to borrow 10,000 for a car and holiday. he lives at home works fulltime but has no credit history. His bank is Santander and they only lend to over 21s. Is it worth him applying else where or would it always be a no.

BugsyBrowne

otoodles wrote: »

My son is 20 and wants to borrow 10,000 for a car and holiday. he lives at home works fulltime but has no credit history. His bank is Santander and they only lend to over 21s. Is it worth him applying else where or would it always be a no.

How much does he earn?

Apples2

That is an awful lot of debt for a "regular" 20yr old to fritter away (cars and holidays are not appreciating assets).

I think he will struggle to obtain £10k but it does depend upon his circumstance.

otoodles

He earns around 12,000 a year. I also think its alot to borrow but hes adament he can afford the payments, but anyway he will probably be declined anyway.

Tixy

A lot of lenders do have a 21year old requirement on them. But aside from that with no credit history he is very unlikely to get such a large loan, even if he earns a good salary.
He needs to look at this article http://www.moneysavingexpert.com/loans/credit-rating-credit-score about building a credit history with subprime cards etc but its likely to take a good year or so to get it looking decent.

Edit - No chance on a £12k salary. How long was he hoping to take it out over? he'd have been paying for it long past having the car. People with perfect credit files are struggling to borrow more than 50% of their earnings. He might get secured finance on a car for around £5k but unlikely to get much more. Though it would be far better to buy a small cheap car in keeping with his salary - if he saved up for 2-3months he could buy a decent runaround.

BugsyBrowne

otoodles wrote: »

He earns around 12,000 a year. I also think its alot to borrow but hes adament he can afford the payments, but anyway he will probably be declined anyway.

The answer is NO then they will not lend 10k when he only earns 12k

Coveredinbees!!!!

Tell him to grow up and not be such an idiot. He should be saving not getting himself in to unnecessary debt.

jonesMUFCforever

If he is living at home how much has he saved in the last 6 months?
Whatever that figure is the figure he can afford to repay.

I too agree that he has no hope with the finance.

kilasuit

star-fire wrote: »

The answer is NO then they will not lend 10k when he only earns 12k

that is yet more inappropriate comments from you


I myself earn 12k and have a potential 13k in CC's loans and OD's

Go figure

P.s. i'm 20

Lokolo

kilasuit wrote: »

that is yet more inappropriate comments from you


I myself earn 12k and have a potential 13k in CC's loans and OD's

Go figure

P.s. i'm 20

And it show's how well you've done given the amounts of debts and the rates you are paying at....

Congrats...!

kilasuit

Lokolo wrote: »

And it show's how well you've done given the amounts of debts and the rates you are paying at....

Congrats...!

Reread my post as the key word in it is POTENTIAL.